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The Dutch Tax System

The Netherlands is a socially conscious country, with a progressive tax system. 

You pay a proportion of your income to taxes and in return you can among others expect well-maintained roads, excellent facilities and a first-rate social safety net. In paying taxes your personal situation is taken into account (non-working partner, for example), type of work, residency status and other assets and earnings (particularly from abroad) affect your position considerably. Moreover, there is a special tax rule for international knowledge workers: the 30 per cent tax regulation.

30 per cent tax regulation  

International knowledge workers in the Netherlands can profit from interesting tax deductions. The so-called 30 percent regulation offers expats with scarce knowledge and skills a considerable tax discount. The taxable amount of the gross income of expats in the Netherlands can be reduced to 70% (instead of 100%). This means 30% of their income is tax free. The rule applies for a maximum duration of 8 years.

“The working environment in most Dutch companies ensures a very good work-life balance. Moreover, the social system here appears to ensure more equality than other places I have seen and heard of.”  

Pradhayini Ramamurthy from India works at Thermo Fisher Scientific